Bunzel, H. Christensen, B.J. Kiefer, N.M. Korsholm, L.
Abstract
The homogeneous search equilibrium model of Mortensen (1990) and Burdett and Mortensen (1998) is extended to allow on-the-job wage growth. The extension allows an improved empirical fit to the cross-section wage distribution. The estimation problem is nonregular but tractable. Estimated parameters are sensible and interpretable. The fit to the wage distribution is improved relative to homogeneous model but still not entirely satisfactory.
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Publisher Info
Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number
99-11.
Length: 19 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:clmsre:99-11
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Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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